Yula.la News

With an increasing number of Lao people turning to loans to finance their consumer and business purchases such as properties, vehicles, and capital there is a percentage of individuals unaware of the repercussion behind loan repayments. Resulting in too many people living in difficult financial situations that could have them forfeiting hard-worked, valuable assets to their lenders. 

Yula.la Money Matters part II broadly discusses the process of refinancing in Laos and some key tips for borrowers currently struggling throughout their repayment process. We want to ensure that lenders have valuable insight into the process of refinancing that helps protect their assets and finances. If you haven’t already, make sure to read part I of the Yula.la Money Matters found here.

Let’s briefly discuss what refinancing is and how it can help ease your repayment process. 

Refinancing – is the process of revising and replacing the terms of an existing credit agreement such as automobile or property loans. It involves re-evaluating and changing the original credit and repayment process. 

Individuals usually seek refinancing options when they want to revise their terms to have better interest rates and/or payment plans than what they had before. 

For example, let’s say Bo takes out a loan to pay off a new car. His original loan agreement has an interest rate of 8% with a repayment plan of five years. After a year of payments, he decides he wants to refinance his car loan for a new agreement with a different lender. He can go to a new lender financial institution to decrease his interest rate and change his repayment plan if his repayment is at least or lower than 50 million LAK.  

Once the new, refinanced loan is approved, the original agreement is automatically replaced with the new terms of agreements. With refinancing, Bo can now enjoy the benefit of a 5% interest rate paid within two years instead of 8% paid in a five-year term. He is now saving money from recurring interest and the ability to pay in a shorter period. This is why refinancing can be incredibly beneficial for those who are struggling with their current loan repayment plan. Refinancing is a great way to re-evaluate your finances and loans while protecting your assets from unnecessary risks.

Just to summarize, here are the key benefits to refinancing:

- Lowers your interest rate

- Allows you to change the original loan agreement

- Allows you to change the repayment period, such as a shorter repayment time frame.

- Protects your credit and current assets from the original loan agreement

Next steps to refinancing:

Are you thinking to refinance your car, mortgage, or business loans? If you're looking to buy a new car check out our listings with hundreds of new cars and thousands of used car listings. Refinancing is a great way to renew a loan's term agreement and to reduce an unwanted interest rate.

If you are looking for a chance to have better loan terms you can consider going to Lao's top financial institutes, Krungsri Leasing, to meet your financial needs. Krungsri Leasing specializes in helping meet the needs of individuals struggling with past loans that are difficult to pay off with fantastic refinancing options that are guaranteed to make your repayment plans better than ever before.

Check out some of the leading financial firms here at www.yula.la/finance. Visit Krungsri Leasing for one on one consultation for all your refinancing and banking needs.